AUGUSTA, Ga. (AP) - The Augusta University Health System is looking to cut costs after running a $20 million deficit in the first nine months of its budget year, due to increased costs coming at least in part from the COVID-19 pandemic.
The Augusta Chronicle reports CEO Katrina Keefer told the health system board Thursday that she is looking to cut open positions and reduce the use of “very expensive” contract nurses and other workers the health system took on to help fight the pandemic.
“It’s truly a comprehensive look at our business and how we can bring our expense base in line” with productivity, she said. No layoffs are currently planned, Keefer said.
Driving the loss was a $29 million increase in salary and wages, a $7 million increase in benefit payments, $7.4 million more for supplies and $5.6 million more for drugs and pharmaceutical supplies. On the plus side, the health system saw non-operating revenue and investment gains increase by $18.7 million.
The $40 million plan includes efforts to reduce salary and supply expenses, but also to collect more revenue.
Keefer said that as new nurses are hired directly to staff, including new graduates, contract nurses can be cut.
The health system did see revenue increase by $26 million, or 3.5%. Unreimbursed charity care rose to $183 million
“We are truly taking care of the residents and all of those who come through our doors,” she said.
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